SpaceX acquires xAI in record deal valued at about $1.25 trillion
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Elon Musk said SpaceX has acquired his AI company xAI in a record-setting transaction that brings his rocket-and-satellite business together with the maker of the Grok chatbot, as the privately held group positions itself ahead of a widely anticipated IPO.
Reuters reported the deal values SpaceX at roughly $1 trillion and xAI at about $250 billion, for a combined valuation near $1.25 trillion.
The Associated Press noted Musk has repeatedly pointed to space-based computing as a long-term solution to the power and cooling constraints facing AI data centers on Earth, linking the rationale to SpaceX’s infrastructure, including Starlink, and xAI’s AI stack.
In a separate update, xAI posted on Feb. 2, 2026 that SpaceX announced it had acquired the company.
